1) Many employers offer incentives to employees who refer friends and associates for job openings as a way to cut recruitment costs and find candidates who already share the company culture.
2) However, some concerns with referral programs are that they could restrict new ideas and that friendships could bias evaluations of referred candidates.
3) Employers have implemented measures like hiding referral sources and assessing referrals with the same standards as other candidates to address these concerns while still benefiting from social networking in hiring.
1) Many employers offer incentives to employees who refer friends and associates for job openings as a way to cut recruitment costs and find candidates who already share the company culture.
2) However, some concerns with referral programs are that they could restrict new ideas and that friendships could bias evaluations of referred candidates.
3) Employers have implemented measures like hiding referral sources and assessing referrals with the same standards as other candidates to address these concerns while still benefiting from social networking in hiring.
1) Many employers offer incentives to employees who refer friends and associates for job openings as a way to cut recruitment costs and find candidates who already share the company culture.
2) However, some concerns with referral programs are that they could restrict new ideas and that friendships could bias evaluations of referred candidates.
3) Employers have implemented measures like hiding referral sources and assessing referrals with the same standards as other candidates to address these concerns while still benefiting from social networking in hiring.
Social networking hits the workplace byAlicia Ctegg
A Career-minded peopleknow that hav-
ing a wide circle of friendscan be a good thing in the job market.Now employers are benefiting from the s addressbooks of their employeesby rewarding those who talent-spotfor thecompany. B Almost half of UK employersoffer staff an incentive to get friends and ro associates to makejob applications, values of the culture they are joining. samemethodsas externalapplicants. 'The accordingto the CharteredInstituteof learning curve for becoming Another safetymeasureis to hide the PersonnelandDevelopmentin theUK. effective is much shorter,'says Richard source,wherepossible,throughwhich Also on the increaseareprogralnmes Jordan, Head of Employer Brand at zs referralshave enteredthe selection which encourageformer employees Ernst & Young in London. pipeline. rs to feed back recruitmentleads and F One concem. however. is that refer- J Recommendationsarevaluableonly c o n s i d e r e j o i n i n gt h e c o m p a n yi n ral programmes restrict the flow of new if they provide candidateswith the the future. ideas into organisations,becauseexist- requiredskills. Recruitersmust also C Growing enthusiasmfor social ing staff are likely to recommend so planfor how to dealwith appointments n e t w o r k i n g h a s m a d e ' p e r s o n a l 50 people who think like they do. that go wrong. To limit their financial zo introduction'popular.'The marketis G As the popularity of referral exposure,someemployerspaybonuses very aware of the power of word of programmes which offer a reward has only after a referred candidatehas mouth,'saysRichardSpragg,Commu- risen. so has the size of the reward. A completeda probationaryperiod. nicationsManagerat EPC-global. case in point is professional services K One employer invites staff, part- 'It is drivenby businesses wakingup firms, where bonuses can range from icularly those in areas of skills 2s to communitiessuchasMySpaceand f2000 for the appointment of a secre- shortages, to enrol as 'talentscouts'. FriendsReunited.' tary to f 10000 for a partner. However, They then receive an online magazite D Employersmeasurablybenefitfrom another concern is that extravagant that highlights recruitmentpriorities referral programmes;they can cut bonusesmay tempt staffto recommend m and offers tips on how to network. recruitment budgets. According d) names inappropriately. They learn how to spot and approach 30 to one group HR director,in the UK, H Some feel that friendship can talentedpeoplein order to increasethe 20 per cent of recruits come through colour someone's view of a prospec- talent pool. In some people'sview, employeereferrals,which representa tive mate's capabilities. When a though, not paying the recruitment 50-per-centcostsaving,while in India respected employee recommends a ss bonus until after a probationary abouthalf comethroughreferrals,and friend, employers may be tempted to period is a clear caseof management :s the savingsarecloserto 75 per cent. assume that the candidate will make avoidingresponsibi Iity. E Keepingcostsdown isn't the only an equally good colleague. attractionof referralandex-employee Referral programmes are useful, but hiring schemes. Justas importantare the benefitsthat flow from appointing certain rules are necessary.Rule one is that referred candidates should be FT $ someonewho is known to sharethe assessedon the same basis and by the